BlackBerry (BBRY) Q2 Release Contains No Bombshells, Thinks Analyst
- Market Wrap: Men's Wearhouse/Jos. A. Bank Strike Deal; Fuel Cell Stocks Pop, Drop; Bye, Bye Fannie and Freddie?
- Streetinsider.com After-Hours Movers 03/11: (OXGN) (PRMW) (PAY) Higher; (MX) (KTOS) (PLUG) Lower
- Men's Wearhouse (MW) to Acquire Jos. A. Bank (JOSB) for $65/Share Cash
- The End of Fannie (FNMA) and Freddie (FMCC)?
- Dick's Sporting Goods, Inc. (DKS) Reports In-Line Q4 EPS; Issues Mixed Q1, FY14 Outlook
"The key question is whether there are issues that could cause a snag in Fairfax’s due diligence, in our view. While the company’s MD&A filing may provide more color, based on the company's earnings, we do not believe there is," said Um.
"Although BBRY’s unencumbered by debt, we do note a ~$500MM reduction in cash and equivalents that is concerning. Given that BBRY plans to restructure and wants to assume ~$2B in leverage, we are of the belief that the company should sell certain of the assets it has (like parts of its $1.3B in buildings/leasehold improvements/other) to bolster its cash position. We believe that Fairfax being a sophisticated investor is likely cognizant of this issue and will address it appropriately to stem further erosion in the company’s liquidity," added the analyst.
Wells Fargo has a Market Perform rating on BlackBerry with a price target of $8 to $9.
For an analyst ratings summary and ratings history on BlackBerry (NASDAQ: BBRY) click here. For more ratings news on BlackBerry click here.
Shares of BlackBerry closed at $7.95 yesterday, with a 52 week range of $7.75 to $17.22.
You May Also Be Interested In
- UPDATE: Cowen Lifts PT on ChipMOS Technologies (IMOS) to $29; De-Levering Taking Hold
- UPDATE: Ascendiant Capital Starts Neonode (NEON) at Buy
- UPDATE: Ascendiant Capital Starts Texas Instruments (TXN) at Buy
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View
Related EntitiesEarnings, Wells Fargo
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!